Fed freezes policy despite slow US economy

WASHINGTON (AFP) – The Federal Reserve left monetary policy in neutral Wednesday as it slashed US economic growth estimates, saying the slowdown was in part due to factors that were “likely” to be temporary.

The Federal Open Market Committee (FOMC) unanimously decided to hold its near-zero interest rate, end a $600-billion bond-buying program by June 30 and continue to reinvest its principal payments from security holdings.

The central bank’s decisions were widely expected by economists and experts.